The German government is introducing a €1 billion ($1.1 billion) investment fund aimed at securing raw materials, as part of efforts to reduce reliance on countries like China for critical minerals.
“Great news — the raw materials fund is on its way,” announced Franziska Brantner, Deputy Economy Minister, in a post on X on Wednesday.
Brantner, a member of the Greens, part of Chancellor Olaf Scholz’s coalition, emphasized the importance of strengthening Germany’s supply chain resilience for critical raw materials amid growing geopolitical uncertainties.
Supply chain disruptions triggered by the pandemic, along with Russia’s invasion of Ukraine, revealed Europe’s vulnerability due to its reliance on a few trading partners for energy and raw materials essential to high-tech and green projects.
Brantner’s announcement follows a Bloomberg report from February about the fund, which will be managed by the state-owned development bank KfW.
“With this fund, we are investing in equity for projects both domestically and internationally, covering mining, processing, and recycling,” Brantner explained. “This is a crucial step, one that other nations have already successfully taken.”
According to a government official, the government and KfW are expected to decide on the fund’s initial investments in the coming weeks. The official requested anonymity due to the confidential nature of the plans.
